In the accompanying figure, labor costs $100 per unit. The manager wants to produce 2,500 units of output. Answer the following questions:

a. At point A, the MRTS is__________ (less than, greater than, equal to) the input price ratio w/r. The total cost of producing 2,500 units with input combination A is $ __________. The price of capital is $__________ per unit.b. By moving from A to B, the manager__________ (decreases, increases) labor usage and__________ (decreases, increases) capital usage. The move from A to B decreases __________but leaves__________ unchanged. At B, MRTS is__________ (less than, greater than, equal to) the input price ratio w/r. The total cost of producing at B is $ __________.c. At point C, the manager __________the__________ cost of producing 2,500 units of output. MRTS is__________ (less than, greater than, equal to) the input price ratio w/r.d. The optimal input combination is__________ units of labor and__________ units of capital. The minimum total cost for which 2,500 units can be produced is $ __________.e. Input combination E costs $ __________. Explain why the manager does not choose input combination E.

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90 E \ C В A Q = 2,500 10 20 30 40 50 60 Labor (4) Capital (K)